BILL ANALYSIS C.S.H.B. 1342 By: Yarbrough 4-21-95 Committee Report (Substituted) BACKGROUND Over the past few years, establishments which provide adult entertainment (totally nude) are moving into residential neighborhoods. Many of these establishments were previously licensed by the TABC. However, due to violations and other factors many of these establishments were going to be denied renewal of their license or permit. To remain in business, they became totally nude, and became "bring your own" alcohol establishments, that do not have to provide background information, required to apply for a license. They also do not have to follow the same guidelines that permitted or licensed establishments are required to adhere to under the Texas Alcoholic Beverage Code. Further complicating things is that there is no control over how much an individual consumes since the individual brings his own. This type of atmosphere has proven to provide for an unsafe environment both inside and outside of these establishments. PURPOSE CSHB 1342 establishes an Exhibitor's Permit, as well as the fees, restrictions and distance requirements for establishments that provide totally nude entertainment. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 11.11(a), Alcoholic Beverage Code. Provides that certain permit holders must file a surety bond of $5,000 to insure applicant's conformance with alcoholic beverage law. SECTION 2. Amends Section 11.39(a), Alcoholic Beverage Code. Requires applicants for exhibitor's permit to publish notice of application in county in which the place of business is located. SECTION 3. Amends Section 11.391, Alcoholic Beverage Code, to require notice by sign in a specific time frame, the proposed hours of operation of the premises. The sign must be clearly visible from the street. If it is a sexually oriented business, notice must also be filed upon renewal, again within a specific time frame. Allows the commission to deny an application if applicant fails to post notice. Defines "business day". SECTION 4. Amends Subtitle A, Title 3, Alcoholic Beverage Code, by adding Chapter 54, EXHIBITOR'S PERMIT; Sec. 54.001. Definitions Sec. 54.002. Defines authorized activity of an exhibitor's permit and when a person may allow a person to possess or consume alcoholic beverages on the premises. Sec. 54.003. Annual state fee for an exhibitor's permit is $3,000. Sec. 54.004. Permit required to conduct activities, and penalty for violation is a third degree felony. Sec. 54.005. Sets distance requirements of 3,000 feet from church, or house of worship, public or private school, playground, playing field, or park , day care center, adult care facility, hospital or another permitted premises. Sec. 54.006. Restricts entry by persons 18 years or younger. Violation of this section is a misdemeanor, punishable by a fine of not less than $100 or more than $500. Subsequent violations subject violator to fine of $500 and not more than $1,000 and by confinement in jail for not more than one year, or by both. SECTION 5. Effective Date: September 1, 1995. Changes in law apply only to applications for or renewals on or after effective date. SECTION 6. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute added provisions requiring the posting of a conduct surety bond, and it also added procedures and requirements for publishing and posting of notice for application and renewal of permits for sexually oriented businesses. The original did not contain this language. SUMMARY OF COMMITTEE ACTION HB 1342 was heard in a Public Hearing on April 11, 1995. The Chair laid out HB 1342 and recognized the author Rep. Yarbrough to explain the bill. Rep. Kubiak offered a committee amendment , and moved adoption of committee amendment #1. There was no objection. The Chair recognized the following persons to testify in favor of the bill: Mr. Michael White, Greater Houston Partnership; Mr. Gary Freeman, Constable, Harris County Constable, Pct. 2; The Chair recognized the following persons to testify against the bill: Mr. Steven H. Swander, Attorney, Tx. Entertainment Assn.; The Chair recognized members for questions. The Chair recognized Rep. Yarbrough to close. HB 1342 was left pending in committee. HB 1342 was considered in a Formal Meeting on April 21, 1995. The Chair laid out HB 1342 which was pending in committee. There was no objection. Rep. Pickett offered a complete committee substitute and moved that the full committee adopt CSHB 1342. There was no objection. Rep. Yarbrough moved that the full committee adopt HB 1342 as substituted and that it be reported favorably to the full House with the recommendation that it do pass and be printed. The motion prevailed by the following vote: AYES: 8, NAYS: 0, ABSENT: 1.